PTSB Equity Release

[lufinn]

Hi,
We are going to apply to increase our mortgage with PTSB and was just wondering what will be involved?
Mortgage Remaining: 235000 (approx)
House Value: 450000
Current Int Rate: 4.05 (tracker - most recent 0.75% decrease still due)
Gross Annual Income: 60000

We intend to look for an extra 45000 bringing the mortgage total up to 280000. This will clear all our loans(including 30000 we borrowed from family to buy the house). My questions are:

- are we likely to get this amount?
- will there be legal fees?
- will we have to amend our mortgage protection/life insurance?
- will the extra amount be treated effectively as a separate loan? i.e. different term & interest rate? Or will it just be added to our existing mortgage?
- is there anything else I need to know about / consider?

Thanks in advance.

Lufinn

 

[ClubMan]

- are we likely to get this amount?

Depends on your circumstances - e.g. income, other debts etc.

- will there be legal fees?

Not sure but I believe that there may be.

- will we have to amend our mortgage protection/life insurance?

Yes unless your existing policy covers the new total amount.

- will the extra amount be treated effectively as a separate loan? i.e. different term & interest rate? Or will it just be added to our existing mortgage?

Don't know - sorry.

- is there anything else I need to know about / consider?

You cannot claim owner occupier mortgage interest tax relief on any amounts borrowed for purposes other than the purchase or renovation of your home (e.g. to clear other debts). Also - now might be an opportune time to see if switching lenders might also yield further savings.

 

[Senna]

Your on a very good tracker rate, dont let them talk you into changing rate to get the top-up.
Also i doubt any other bank will give you a better rate so re-mortgaging would be a bad idea, they may offer you a better introductory rate but be wary of that also.

 

[Raskolnikov]

Your on a very good tracker rate, dont let them talk you into changing rate to get the top-up.

That was my thought.

There is not a snowballs chance in hell that PTSB will let you top-up on your favourable tracker mortgage. If they're already losing money on your tracker, then they'll lose even more money by increasing your LTV.

It would not surprise me if they give you the top-up on condition that you move over to a less favourable variable rate. If I was offered such an option, I would do without the top-up.

 

[lufinn]

Thank you all for your replies. It seems that what I need to look out for is the interest rate they offer (assuming they approve the application) and make sure that it does not affect my current rate.